This is a ridiculous comparison…and one of the reasons why the US Economy is so off kilter right now.

Salesforce.com is a company built on marketing hype, bloat and smoke and mirrors…it has never turned more than a meager profit and is usually in the red…yet its bloated stock price warrants a high valuation regardless of an astronomical P/E #…

GM’s stock and market cap is diminished for a number of reasons, but GM is still larger than SFDC in nearly ever important category…it’s lower market cap is due to a more in-line share price and the fact that it is an asset-intensive organization…

But both companies are unprofitable models…

On the CRM side…look at SugarCRM and other open source startups that are already spelling the death knoll for outdated multi-tenant models like Salesforce – which do not work, and do nothing but lock customers in to yet another proprietary “platform” that “forces” them to spend money on software they will never own and give up their data to a company that will never delete it nor release it back to the customer without a fight…

No software? …more like, No Value…

Thanks for your comment.

If you believe that the Salesforce.com valuation is based on irrational expectations, this may not seem like a fair comparison. But I am making the assumption that markets are efficient, and the market is currently applying a similar valuation to the two companies.

If SF.com doesn’t produce significant earnings growth, the stock price will likely fall. Time will tell.

I’ll add that the comparison is also a commentary (unintended) on the weakness of GM’s stock price. Toyota and Honda Motor Company are both valued at well over $100 billion. Both are less than Google, but well above GM.